ARCHIVED - Telecom Decision CRTC 2006-2

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Telecom Decision CRTC 2006-2

  Ottawa, 12 January 2006

Northwestel Inc. - Disposition of 2004 revenue deferral account balance

  Reference: 8695-C12-200413625
  In this Decision, the Commission approves Northwestel Inc.'s proposal to remit to the central fund, as a one-time payment, the revenues accrued in its deferral account.


In Long-distance competition and improved service for Northwestel customers, Decision CRTC 2000-746, 30 November 2000, the Commission stated that, due to the substantial reduction in toll rates and the introduction of toll competition in 2001, there would be uncertainty with respect to Northwestel Inc.'s (Northwestel's) long distance market share and revenues. The Commission further stated that this could result in large deviations between the actual and forecast toll, settlement and Carrier Access Tariff (CAT) revenues, and consequently could affect the required amount of any supplemental funding. The Commission, therefore, directed that Northwestel accumulate the differences between forecast and actual toll, settlement and CAT revenues in a deferral account. The Commission determined that any amount accumulated in the revenue deferral account would be disposed of in the following year in conjunction with the determination of any supplemental funding requirement.


In Northwestel Inc.- Supplemental funding requirements for 2004 and 2005, Telecom Decision CRTC 2005-54, 15 September 2005, the Commission directed Northwestel to file an application for the disposal of the 2004 balance in the revenue deferral account 30 days after the date of the Decision.


The Commission received an application by Northwestel, dated 31 October 2005, to dispose of the balance in its revenue deferral account. Northwestel indicated that the 2004 revenues from toll, settlement, and CAT were $150,000 greater than the company had forecast and that, as directed by the Commission, they were accrued in the revenue deferral account. Northwestel proposed to clear the revenue deferral account by remitting this amount as a one-time payment to the Central Fund Administrator (CFA) on 30 November 2005. In support of its proposal, the company provided audited financial statements for 2004.


The Commission received no comments with respect to the application.

Commission's analysis and determination


The Commission notes that the amount to be remitted to the CFA is small and considers that it is reasonable that the company remit this amount as a one-time payment. Accordingly, the Commission approves Northwestel's proposal to remit the $150,000 in the deferral account as a one-time payment to the CFA and directs the company to remit this amount within 10 days of the date of this Decision.
  Secretary General
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Date Modified: 2006-01-12

Date modified: